Banks mixed in response to stress test results; most preferreds drop after jobs data

By Christine Van Dusen

Atlanta, March 6 – The country’s biggest banks on Friday continued to react to the results of the Federal Reserve’s stress tests – which showed that the lenders are strong enough to live through a significant economic downturn – while the larger markets digested a positive jobs report from the United States.

In response, preferred stock trading was somewhat mixed on Friday, market sources said.

Bank of America Corp.’s 6.5% series Y noncumulative preferreds (NYSE: BACPY) traded Friday at $25.10, down from the previous day’s $25.54, while its 6.625% series W noncumulative preferreds (NYSE: BACPW) closed at $25.35 on Friday, down from $25.73. The Charlotte, N.C.-based bank’s results were the most improved year over year.

Citigroup Inc.’s stress test results, which showed there could be a hefty equity loss, meant that Citi’s 6.875% series K fixed-to-floating rate noncumulative preferreds (NYSE: CPK) traded Friday at $26.83 before closing at $26.76, down from Thursday’s $26.90.

Goldman Sachs Group Inc., which was the only bank to surpass the total risked-based capital threshold, saw its 5.5% series J fixed-to-floating rate noncumulative preferreds (NYSE: GSPJ) trade Friday at $24.95 and close at $24.85, down from Thursday’s close of $25.09.

Morgan Stanley & Co. Inc.’s 6.875% series F fixed-to-floating rate noncumulative preferreds (NYSE: MSPF) ticked up a penny to $27.18 on Friday before closing at $27.04. Its 6.375% series I fixed-to-floating rate noncumulative preferreds (NYSE: MSPI) were spotted at $26.29 before closing at $26.15. On Thursday the notes dipped a nickel to $26.34.

Wells Fargo & Co., which showed that it had 2% more than the minimum in every category, saw its 5.85% series Q fixed-to-floating rate noncumulative perpetual preferreds (NYSE: WFCPQ) trade Friday at $25.90 before closing at $25.82. On Thursday the stock was seen at $26.03.

Mixed morning

In other trading of preferreds on Friday morning, Barclays Bank plc’s 8.125% non-cumulative callable dollar preference shares series 5 ADR dipped 4 cents to $26.45 on 325,551 shares traded.

CBL & Associates Properties’ 7.375% depository shares cumulative redeemable preferred stock declined 8 cents to $25.75 on 219,725 shares traded.

And Goldman Sachs’ depository shares floating-rate non-cumulative preferred stock, series D, rose a penny to $20.24 on 186,483 shares traded on Friday morning.

Lower close

On Friday afternoon, RBS Capital Funding Trust V’s 5.9% noncumulative guaranteed trust preferred securities fell 25 cents to $24.58 on 598,434 shares traded.

Barclays Bank’s aforementioned 8.125% preferreds dipped 10 cents to close at $26.35 on 250,172 shares traded.

And Wells Fargo’s 8% depository shares non-cumulative perpetual CI A preferred stock, series J, dropped 31 cents to $28.55 on 203,544 shares traded.

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